Correlation Between PH Tech and SeAH Besteel
Can any of the company-specific risk be diversified away by investing in both PH Tech and SeAH Besteel at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PH Tech and SeAH Besteel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PH Tech Co and SeAH Besteel Corp, you can compare the effects of market volatilities on PH Tech and SeAH Besteel and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in PH Tech with a short position of SeAH Besteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of PH Tech and SeAH Besteel.
Diversification Opportunities for PH Tech and SeAH Besteel
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 239890 and SeAH is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding PH Tech Co and SeAH Besteel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SeAH Besteel Corp and PH Tech is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on PH Tech Co are associated (or correlated) with SeAH Besteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SeAH Besteel Corp has no effect on the direction of PH Tech i.e., PH Tech and SeAH Besteel go up and down completely randomly.
Pair Corralation between PH Tech and SeAH Besteel
Assuming the 90 days trading horizon PH Tech Co is expected to generate 1.89 times more return on investment than SeAH Besteel. However, PH Tech is 1.89 times more volatile than SeAH Besteel Corp. It trades about 0.22 of its potential returns per unit of risk. SeAH Besteel Corp is currently generating about -0.19 per unit of risk. If you would invest 730,000 in PH Tech Co on October 16, 2024 and sell it today you would earn a total of 89,000 from holding PH Tech Co or generate 12.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PH Tech Co vs. SeAH Besteel Corp
Performance |
| Timeline |
| PH Tech |
| SeAH Besteel Corp |
PH Tech and SeAH Besteel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PH Tech and SeAH Besteel
The main advantage of trading using opposite PH Tech and SeAH Besteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PH Tech position performs unexpectedly, SeAH Besteel can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SeAH Besteel will offset losses from the drop in SeAH Besteel's long position.| PH Tech vs. Jeju Beer Co | PH Tech vs. ENF Technology Co | PH Tech vs. iNtRON Biotechnology | PH Tech vs. DB Financial Investment |
| SeAH Besteel vs. AptaBio Therapeutics | SeAH Besteel vs. Daewoo SBI SPAC | SeAH Besteel vs. Dream Security co | SeAH Besteel vs. Microfriend |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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